How to create an in-house hiring function - part 3 of 3 - Talent Heroes
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How to create an in-house hiring function – part 3 of 3

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How to create an in-house hiring function – part 3 of 3

 

In Parts 1 and 2 of our mini series, we’ve looked at expert advice from Deloitte and Robert Walters on hiring and talent acquisition (TA), whilst we’ve broken down ‘employer brand’ and  ‘candidate experience’ to determine the parts of the hiring jigsaw that need to be in place to save you money and time, whilst building a robust platform for future growth.

In Part 3 we look at final considerations and costs for your in-house recruitment capability. Functional considerations of value for money, utilisation, legal and HR, will need addressing in your ‘checklist’ of things to have in place to manage all your direct hiring needs.

What about legal and HR?

Determining that you are going to hire staff, comes with a set of legal and HR requirements. From and permanent perspective you need to think about pensions, holidays, sick policies, legal methods of referencing and testing etc. Are you ready for those requirements? If you’re looking at contractors and freelancers, you don’t want to fall foul of the HMRC rules over IR35, or you’ll find yourself liable for tax bills that you weren’t expecting. Equally, your immigration checks for the right to live and work in the UK will have to be top notch. There is a £20000 fine for any illegal worker that you hire, whether they are part time, self employed freelancers and contractors, or permanent with you. Then there is GDPR and how you’ll manage data that you collect? Your TA function (in association with HR if you have it) will need to understand who they can hire, and in what capacity, and on what terms, with what supporting paperwork, and how information is stored, in order that you stay the right side of the law.

You will need to understand who you can hire, in what capacity, and on what terms, with what supporting paperwork, and how information is stored, in order that you stay the right side of the law

A question of volume

How many hires can your In-House Recruiter make for you per month? It’s a difficult question and one that has a variety of answers. An In-House Recruiter cannot be expected to deliver more than 2-4 permanent hires per month. The more complex the hiring requirement the less they’ll place. It’s not a science, but when you consider that some hires can take 6 months to find and secure (before their notice period), and that the ‘future of work’ studies that have been published, suggest that permanent hiring is on the decline, in favour of flexible work arrangements, the volumes you expect of your TA function, need to be looked at with an objective lens.

An in-house recruiter cannot be expected to deliver more than 2-4 permanent hires per month.

Utilisation

No one wants to waste money and having someone in their organisation that is not utilised at least 90% of the time, yet many businesses have anIn-House Recruiter sitting there twiddling their thumbs. When looking to hire for your TA function, plan your next 6-12 months worth of hiring and what it might look like. What types of roles will they be, when will you be hiring them and are they freelance, contract or permanent? This will help you understand the time requirement needed to hire. For example, Software Engineers will take longer to hire than Customer Support Specialists, and timing up when you hire means you’ll know when you need an In-house Recruiter with you. Maybe they can be on contract, rather than permanently hired?

Does it stack up?

The biggest question has to be ‘Does hiring an In-House Recruiter stack up for you?’ It’s important not to underestimate the investment requirement, or the experience required for it to work out well. A £25k In-House Recruiter will not be able to start from a ‘ground zero’ position and perform for you, whereas an experienced Senior Recruiter, can determine process and procedures, understand the importance of brand needs, whilst they will carry gravitas with candidates and hiring managers alike to get the job done.

Can you afford the tools and software needed and do you want to add another management requirement to your list of responsibilities?

How much does it cost to hire an experienced in-house recruiter?

The costs are higher than you might think (costs in GBP):

  • Salary 40000

  • NI 5520

  • RecTech 10000

  • Advertising 5000

  • Referrals 5000

  • Underutilisation 8000

  • External Recruitment 17500

  • Other Costs 8000

Conclusion

£100,000 is not the cost that most businesses owners would expect a In-House Recruiter to cost them, but it is a reality. It’s also a reality that a single In-House Recruiter will not meet all the requirements of the business. With that in mind, most organisations would recognise that a more agile approach to the business need ought to be deployed.

Part 1 and Part 2, in case you missed them.

Food for thought

Whether you have a TA function of not, the planning and management of that function must be fit for purpose. A knee jerk reaction is doomed to fail and be costly.

Talent Heroes is a people business. We’re contracted by clients to work in house, attracting and hiring an unlimited number of staff, for an all inclusive monthly fee.

 

Talent Heroes hire, so you don’t have to.

Talent Heros
ollie@lindonwilliams.com